Lark and Lam (Child support)

The case of Lark and Lam concerned a child support departure determination. The applicant, Lark, sought to have the child support assessment varied on the grounds of the respondent, Lam's, income, property, and financial resources derived from a company and a trust. The primary issue before the court was whether the existing child support assessment was unjust and inequitable having regard to these financial circumstances and the high costs of child care.

The court was required to determine whether the respondent's financial position, including assets and income held through corporate and trust structures, warranted a departure from the standard child support assessment. Specifically, the court had to consider if the respondent's ability to meet his child support obligations was being obscured or reduced by these arrangements, and if the costs associated with the child's care were such that the current assessment was unfair.

In its reasoning, the court applied the principles of the *Child Support (Registration and Collection) Act 1988* concerning departure from assessments. The court examined the evidence presented regarding the respondent's income, property, and financial resources, including distributions from the company and trust. The court considered the high costs of child care as a relevant factor in assessing the fairness of the assessment. The court found that the existing assessment was indeed unjust and inequitable given the respondent's financial capacity and the child's care expenses.

The court set aside the original child support determination and substituted it with a new assessment that reflected the respondent's actual financial capacity and the significant costs of child care.